- Fourth quarter consolidated revenues increased 6%; full year revenues declined 9% on lower industry equipment demand
- Fourth quarter net income of $89 million; full year net income of $505 million
- Full year diluted EPS at $0.41; adjusted diluted EPS at $0.55
- Amid persistent agricultural equipment market challenges, the Company is preparing for lower demand levels in 2026 ahead of the start of an expected industry recovery in 2027
CNH Industrial N.V. (NYSE: CNH) today reported results for the 3 and 12 months ended Dec. 31, 2025. Fourth quarter net income was $89 million compared with net income of $176 million in Q4 2024. Consolidated revenues were $5.16 billion in the quarter (up 6% compared to Q4 2024) and Net sales of Industrial Activities were $4.45 billion (up 8% compared to Q4 2024). Net cash provided by operating activities was $945 million, and Industrial Free Cash Flow was $817 million in Q4 2025.
Full year 2025 consolidated revenues were $18.10 billion, down 9% year-over-year, with Net sales of Industrial Activities at $15.35 billion, down 10%. Full year net income was $505 million compared to 2024 net income of $1,259 million. Full year diluted earnings per share was $0.41 compared to $0.99 in 2024. Adjusted net income was $703 million compared to $1,339 million in 2024, with adjusted diluted earnings per share of $0.55 compared to $1.05 in 2024. Full year net cash provided by operating activities was $2,538 million, and Industrial Free Cash Flow was $513 million.
“Despite a challenging market environment, CNH delivered solid progress toward its long-term goals in 2025 and strengthened its foundation for success,” said Gerrit Marx, CNH Chief Executive Officer. “We continued reducing dealer inventories, advanced our Quality and Operational Excellence initiatives, and introduced products that directly address the evolving needs of farmers and builders. Our teams executed with discipline, focusing on what we can control while supporting our customers through dynamic economic conditions. As we move into 2026, we remain committed to prudent production planning, purposeful innovation, and delivering superior iron and technology integration. In this industry trough year, while markets are still moving slowly, CNH is moving fast in its transformation and engagement of exceptional colleagues to deliver on our ambitious commitments.”
Net income was $89 million in Q4 2025 with adjusted net income of $246 million. The primary adjustments in the quarter included $123 million in non-cash pretax impairment charges related to in-process R&D acquired as part of the 2021 Raven acquisition, $62 million in non-cash pretax impairment of investment in Monarch Tractor and other minority holdings, and $8 million in pretax restructuring charges. In comparison, in Q4 2024, CNH reported net income of $176 million with adjusted net income of $196 million. The primary adjustment in Q4 2024 included $24 million in pretax restructuring charges.
In North America, fourth quarter industry volume fell 31% year-over-year for tractors over 140 HP and 14% for tractors under 140 HP; combines were down 16%. In Europe, Middle East and Africa ("EMEA"), tractor demand fell 8%, while combine demand rose 40%. In South America, tractor demand fell 8% and combine demand fell 39%. In Asia Pacific, tractor demand increased 19% and combine demand increased 10%.
Agriculture net sales increased 5% for the quarter to $3.6 billion, driven by favorable price realization and positive foreign exchange impacts.
2026 Outlook
Farmers continue to face challenging market dynamics, including low commodity prices, high input costs, and an uncertain trade environment. These conditions are expected to further weaken the North American industry demand for agricultural equipment, while some stability in the EMEA region is projected. In the aggregate, the Company forecasts the global industry retail demand to be lower than 2025 levels by another 5%, down to historic trough levels. CNH’s Agriculture segment has and will continue to respond to these market dynamics by maintaining low production levels, working with its dealer network to lower channel inventory, pursuing cost efficiencies, and managing rapid changes in trade policies. Agriculture equipment industry demand is expected to resume growth in 2027.
Industry construction equipment demand is forecasted to be flattish in 2026 when compared to 2025, with strength in certain nonresidential construction markets offset by persistent weakness in residential construction. CNH’s Construction segment will continue to focus on quality, manufacturing efficiencies, and tariff cost offset opportunities.
Consequently, the Company is providing the following 2026 outlook:
- Agriculture segment net sales between down 5% and flat year-over-year, including +2% currency translation effects
- Agriculture segment adjusted EBIT margin between 4.5% and 5.5%
- Construction segment net sales about flat year-over-year, including +1% currency translation effects
- Construction segment adjusted EBIT margin between 1.0% and 2.0%
- Free Cash Flow of Industrial Activities(4) between $150 million and $350 million
- Adjusted diluted EPS(4) between $0.35 to $0.45
